Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - WorldBridge inks deal with truck maker

WorldBridge inks deal with truck maker

WorldBridge inks deal with truck maker

Local conglomerate WorldBridge International signed an agreement yesterday with Kamaz Foreign Trade Company, a Russian manufacturer of heavy-duty trucks, laying the groundwork for potential distribution across the country with the end goal of establishing an assembly plant in the Kingdom.

The three-stage memorandum of understanding (MoU) will see WorldBridge International conduct a three-month market survey to gauge the potential for Kamaz sales in Cambodia, explained chairman Sear Rithy. The second stage would then give the company sole distribution rights for heavy-duty Kamaz trucks that can be used for container shipping, construction and mining activities, with the final stage setting up a local assembly plant.

“If the deal works out we could be assembling the trucks within two to three years,” said Rithy, adding that plant would be established in Kerry WorldBridge Logistics SEZ, a joint venture between WorldBridge and Hong Kong-listed Kerry Logistic Network Ltd.

While Rithy said the MoU only represents a framework for cooperation with the Russian company, he said the long-term vision is to cut down on Cambodia’s high logistics costs.

“The purpose of this [agreement] is that if you look at Cambodia, our logistics costs are two to three times more expensive then neighbouring countries, and most of the trucks here are second-hand,” he said. “This [distribution deal] could bring in new more affordable trucks into the market that would help drive down the costs of logistics.”

Kamaz trucks, which are currently manufactured in Russia’s Tatarstan region, rose to prominence during the Soviet era for their use by Eastern Bloc militaries. Moscow briefly provided free Kamaz trucks to the Cambodian government in the 1980s.

Tronin Artem, sales representative for Kamaz operations in Vietnam and Eastern Asia, said the company has proven successful in Vietnam by doubling its sales in the last two years despite road weight restrictions limiting their use.

“We have signed this document because we have found a strong partner to help us enter the [Cambodian] market,” he said.

While Artem declined to estimate how many trucks Kamaz could sell in Cambodia, claiming that it was too early to tell, he said the company would target the 15- to 25-tonne segment used for construction and container shipments.

“Right now we are just seeing if there is an import market for us here before we move forward with the other stages of the MoU,” he said. “We have been seeing growth in our overseas sales worldwide and we think Cambodia could potentially be a good market. But we will only move forward when the time is right.”


  • Kak Channthy, Cambodian Space Project frontwoman, killed in crash at 38 [Updated]

    Updated 5:05pm, Tuesday, March 20, 2018 Kak Channthy, frontwoman of popular The Cambodian Space Project, was killed Tuesday morning in a traffic accident in Phnom Penh. She was 38. Channthy, the internationally recognised singer-songwriter also known as “Srey Thy”, was reportedly travelling in a tuk-tuk on the city's

  • Australians protest Asean summit visit by PM Hun Sen

    Hundreds of protesters gathered in Sydney’s Hyde Park on Friday to protest against Cambodian strongman Hun Sen, who claimed to have been gifted millions of dollars by the Australian government ahead of a special Asean summit this weekend. An estimated 300 protesters, the majority of

  • Peeling back layers of prehistory in Battambang

    When the man passed away, he had not yet reached 50. He belonged to a tribe that had settled near the Sangker River in Battambang province, likely cultivating the fields and raising animals. On the side, they hunted for boars, and even turtles, one of which

  • Phnom Penh smothered in smelly, dangerous haze as landfill fire continues burning

    A putrid haze that has bedeviled Phnom Penh since Monday night will likely continue as a landfill in Dangkao district continued to burn on Friday, creating health risks for the capital's residents. Workers at the Dangkao landfill on site on Friday attributed the fire, which